Gold prices drop in Pakistan as international market weakens

Gold prices in Pakistan witnessed a sharp decline on Monday, tracking losses in the international bullion market amid shifting global economic sentiment and rising geopolitical uncertainty.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola in the local market fell by Rs 5,300 to settle at Rs 488,362. Similarly, the price of 10-gram gold dropped by Rs 4,544, reaching Rs 418,691.

The decline follows a downward trend in international gold rates, where the price of the precious metal slipped by $53 to $4,660 per ounce, including a premium of $20.

Market analysts said the fall in gold prices was largely driven by global investor sentiment shifting toward energy markets, as crude oil prices surged amid escalating geopolitical tensions in the Middle East.

The weakness in gold comes as uncertainty persists over stalled diplomatic efforts between the United States and Iran, which have fueled volatility across global commodity markets. Investors are increasingly reacting to rising crude prices and concerns over potential disruptions to global supply chains, particularly through key energy routes.

Meanwhile, silver prices in the local market remained stable at Rs8,513 per tola, showing no change from the previous session.